What is a CP-18?

Hate to ask the dumb question, but are you sure you have that right?  I Googled it and came up with nothing.

I have personally seen the letter.  Other local practitioners have never heard of it either.

Not a 100% sure but I think a CP-18 is Issued to advise the taxpayer that a portion of his/her refund is being withheld due to an un-allowed item on the return.
 

I did have a client tell me that their refund was smaller bbarsranch, but I just don't understand the secrecy on IRS's part.  The worthless CP-18 does say that a letter is coming.....seems they ought to just tell you what the issue is at the time of this particular letter.

Thanks fory your input.

The IRS sends you a letter to tell you that you're going to be getting another letter.  Your tax dollars at work.

If memory serves me correctly, I recall a client who claimed a child on their return, and their ex did the same. It produced this notice, and its like most mistakes, they send a lesser refund and an explanation in a month.

I searched both Google and the IRS and like I said I couldn't find it.  Like Arch says, our tax dollars at work.

Thanks BGTS.  I must admit, I thought I looked hard and could not find it.

It appears from the CP-18 description that there is an unallowable item in the return.  For all who answered, the three situations I have are all Efiles that were accepted by IRS.  Two of the three have EIC on them; but the third has 180,000+ in income with no deductions--will be real curious as to what the issue is with that one.

BGTS,

Nice work!

I just got one today too -- just curious what every happened with yours?

In the EIC case, IRS wanted us to fax support for the Federal Income tax withheld (W-2s and 1099s);  in the high income case, they sent a partial refund then a few weeks later sent the balance of the refund without any further explanation. I haven't heard from the other 2 people yet.

For these 4 clients, it certainly does everything to discourage Efiling.  They are convinced that this is what caused their issue.

 I received a CP18 letter for 2009 on 3/29/2010.  I have not yet received another letter from the IRS or the rest of my refund.  Today is 10/1/2010

"We have delayed sending you part of your tax refund

The refund check we mailed to you recently was not for the full amount of the overpayment shown on your tax return.  We have delayed sending you the rest of your refund because we have questions about some of the items claimed on your return.

There is no need to contact us at this time.  We will contact you within three weeks to tell you what you need to do to explain the items in question.  At that time, we will give you the name and telephone number of a person to call if you need more information about this review.  If we accept your explanation of the items in question, we will not change the tax or credits on your tax return.  We will send you the rest of your refund.

If we don not accept your explanation, we will write to you and explain any change we propose to make to the tax or credits on your return.  We will also give you information on what to do after you receive our proposal.  It will take about 90 days for us to complete our review of these items.  The remainder of your refund will not be released until our review is finished.

We are sorry or any inconvenience this delay may cause you.  Thank you for your cooperation.